U.S. Bancorp (USB) Investor presentation summary

Strategic priorities and performance

• Focused on organic growth, disciplined expense management, and payments transformation, achieving medium-term targets for return on average assets (1.19%), return on tangible common equity (18.4%), and efficiency ratio (57.4%).

• Fee income grew mid-single digits year-over-year, representing 42% of total net revenue, with strong momentum in capital markets, trust, and payments.

• Payments transformation showed early momentum, with merchant processing and credit card fee revenues growing over 5% YoY and consumer credit card balances rising 5.7% YoY.

• Disciplined expense management delivered nine quarters of stable adjusted expenses, aided by AI, automation, and organizational simplification.

• Strategic acquisition of BTIG adds $750M in annual fee revenue, enhancing global capital markets capabilities and revenue durability.

Financial strength and risk management

• Maintains a strong capital base with a CET1 ratio of 10.8% and robust liquidity coverage ratio of 107%.

• Credit quality remains stable, with net charge-off ratio at 0.54% and allowance for credit losses at 2.03% of loans.

• NDFI loan portfolio is well-diversified, with average credit quality of A+ and criticized rate below 1%.

• Credit ratings remain stable across all major agencies, supporting funding and market confidence.

Balance sheet and revenue mix

• Total assets at $684B, deposits at $515B, and loans at $384B; average consumer deposits grew 2.5% YoY.

• Net interest income increased 3.3% YoY, driven by loan growth and favorable deposit mix; net interest margin expanded to 2.77%.

• Noninterest income rose 7.8% YoY, with broad-based growth in payments, trust, and investment management fees.

• Noninterest expense decreased YoY, reflecting lower compensation costs and ongoing investment in technology and marketing.